Pursuing transport digitalisation to achieve transport cost optimisation

Abstract

ABSTRACT There is increasing interest in transport digitalisation in recent times. However, the antecedents and outcomes of transport digitalisation are not well understood. This study proposes that transport digitalisation is driven by the firm’s digitalisation strategy. It is further argued that transport digitalisation first generates digital transport capabilities (end-to-end visibility, smart scheduling, and smart transport assets utilisation), which subsequently result in enhanced transport cost optimisation. Data to test the proposed relationships was obtained from 138 transport firms operating in Ghana and analysed using structural equation modelling. The findings of the study confirm that digitalisation strategy enhances transport digitalisation, and that transport digitalisation results in the creation of the three digital transport capabilities. With the exception of end-to-end visibility, the digital transport capabilities enhance transport cost optimisation. Additionally, the effect of transport digitalisation on transport cost optimisation is mediated through smart scheduling capability and smart transport assets utilisation capability. The implications of the study for practice are discussed.